Ministry mulls tax based on value of residential property

Staff writer, with CNA

The Ministry of Finance (MOF) is considering imposing different tax rates on residential properties based on their value, in an effort to narrow the widening gap between rich and poor, Minister of Finance Lee Sush-der (李述德) said yesterday.

In addition, the ministry is planning to have home values assessed every year instead of every three years as is currently the case, Lee said in a report to the Legislative Yuan’s Finance Committee.

Under the existing House Tax Act (房屋稅條例), the tax rate — which currently stands at 1.2 percent — applies to all residential properties regardless of value. However, residents of high-value properties may face higher tax rates than those in average-priced homes.

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Lee said that the finance ministry is also seeking to amend the Land Tax Act (土地稅法) to forbid married couples who live with their adult children registering their dwellings at different addresses.

This is aimed at preventing people who own more than one home from using the method to take advantage of the preferential 0.2 percent land tax rate on property for self-residing purposes, Lee said.

In addition to the adjustments to the Land Tax Act, the Ministry of the Interior has submitted the amended Equalization of Land Rights Act (平均地權條例) for Cabinet review. This is aimed at reassessing the nation’s land value more often to reflect actual market changes.

The amendments are still subject to a legislative review before any laws take effect.